As of October 30, Kaspa’s (KAS) coin price was trading 50% below its all-time high. Today, however, the altcoin has gained 8%, partially recovering from those recent losses.
Following this development, several indicators point to the potential for KAS’s price to continue its upswing. Here’s why
Traders Show Renewed Confidence in Kaspa
Kaspa, a project utilizing the Proof-of-Work (PoW) consensus mechanism, reached an all-time high of $0.20 before experiencing a significant price decline. This indicates that many holders took profits from the surge.
Meanwhile, data from Santiment currently reveals that the Weighted Sentiment for Kaspa has turned positive. This metric reflects market participants’ perceptions of the cryptocurrency. Further, a positive reading indicates that the majority of comments surrounding the project are optimistic. Conversely, a negative sentiment suggests a prevailing belief that the price may not rise.
With the current positive sentiment, it appears that bullish attitudes towards Kaspa could stimulate increased demand. This shift in perception, combined with the recent price recovery, suggests a favorable outlook for KAS in the near term.
Read More: Where To Buy Kaspa (KAS): 3 Best Platforms for 2024
One of the analysts expressing optimism about Kaspa is Miles Deutscher, who believes that the coin’s price could bounce off its current support level and continue its rally
“KAS is now down -50% from it’s yearly highs, despite being one of the strongest performers for the first half of the year. Now coming down to test a key support level on the weekly.” Deutscher stated.
In addition to the market sentiment, Open Interest in Kaspa has also increased, indicating heightened trader activity and interest in the asset.
An increase in Open Interest often suggests that more capital is being committed to the market, which can signal confidence among traders about a price increase. This uptick, if sustained, could further support the bullish outlook for KAS.
KAS Price Prediction: Breakout Looms
On the daily chart, bulls have successfully defended the Kaspa coin price at the critical support level of $0.11, which has proven vital in the recent rebound. The formation of a falling wedge pattern adds to the bullish narrative, as it typically signals a potential reversal after a downtrend.
The falling wedge indicates that the selling pressure is waning, with price movements gradually narrowing, suggesting that buyers are starting to gain control.
Therefore, if KAS can break above the wedge’s upper trendline, it may trigger further buying interest. If that is the case, KAS’ price might increase by 44% to hit $0.17.
Read More: Kaspa (KAS) Price Prediction 2024/2025/2030
On the contrary, resistance at the upper trendline of the falling wedge might invalidate this prediction. If that happens, the altcoin might drop to $0.10.
Disclaimer
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